Question: An entity provided the following information for the current year: Accounts receivable - January 1 $2,000,000 Credit sales $10,000,000 Collection from customers, excluding recovery of

An entity provided the following information for the current year:

Accounts receivable - January 1 $2,000,000

Credit sales $10,000,000

Collection from customers, excluding recovery of accounts written off $7,500,000

Accounts written off as worthless $100,000

Sales returns $400,000

Recovery of accounts written off $50,000

Estimated future sales returns on December 31 $300,000

Estimated uncollectible accounts on December 31 per aging $600,000

What is the "amortized cost" of accounts receivable on December 31?

a. $ 4,000,000

b. $ 3,700,000

c. $ 3,450,000

d. $ 3,100,000

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